Campus police officers sprayed can after can of pepper-spray on a group of students who had locked arms peacefully on the campus quad area.
Video of the incident immediately went viral, getting over a million views within 24 hours.
Twenty-one students and alumni sued the university after the incident, claiming their First Amendment rights had been violated.
The settlement calls for each of the 21 students to receive $30,000 for a total payout of $630,000. The agreement also allows others, who were hit with pepper spray, to submit claims for payments of up to $20,000, reports the Sacramento Bee.
In addition, the settlement calls for a payment of $250,000 in legal fees and costs to the ACLU lawyers who filed the suit.
The proposed settlement would also include a written apology from UC Davis Chancellor Linda Katehi, who claimed that the students were “trespassing” and ordered police to remove them.